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Darla owns a dress shop called Darla's Darling Dresses. During the past year, Darla sold some assets to upgrade her facility. She sold racks and
Darla owns a dress shop called Darla's Darling Dresses. During the past year, Darla sold some assets to upgrade her facility. She sold racks and shelving units for $600 cash. In addition to the cash, the buyer gave two mannequins worth a total of $200 to Darla. The racks and shelving units had an original cost of $2,500 and had accumulated depreciation for tax purposes of $2,200.
Darla's amount realized on the sale is $:
and the adjusted basis in the assets sold is $:
, producing a realized on the sale of $:
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